Archive for the ‘ Social Media ’ Category

The White House blip: would ethical standards be helpful?

This morning, an Associated Press Twitter account was hacked, and a false tweet reported explosions in the White House that injured Barack Obama.  There’s been no better illustration of the potential impact of social media on the economy than this:

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Impact of false White House tweet on the S&P 500

In just two minutes, the Dow Jones Industrial Average dropped 145 points!

Once AP stated its account had been hacked and the White House confirmed there was no incident, markets quickly recovered.  Nevertheless, the ‘blip’ stands as a great example of how significant the influence of social media has become.

It also represents another facet of social media use in respect of which comprehensive ethical standards may be warranted.  Although ethical standards are unlikely to be followed by hackers, such standards may assist legitimate social media users to adopt responsible use policies that will protect against inappropriate responses to unconfirmed or suspect information disseminated via social media.  From the early media coverage of the Twitter hacking incident this morning, it is apparent that some traders responded in a knee-jerk manner, while others waited.

How might general ethical standards or company-specific social media policies for the financial sector be useful in such instances?  Perhaps by providing criteria to guide traders in evaluating the legitimacy of information obtained through social media, encouraging responsible communication with stakeholders (e.g., clients), and supporting decision-making in the face of the ethical dilemma of whether to intentionally gain from someone else’s mistake.

For more on the Twitter hacking story that prompted this post:

Click here for coverage in the Wall Street Journal.

Click here for coverage in the Telegraph.

Click here for coverage in the Globe and Mail.

For related reading on social media standards, here‘s a great paper on the need for an “ethical compass” for crisis mapping: it was published early last year in Global Brief.

The Changing Currency of a Modern Licence to Operate

Following up on my prior writing and speaking engagements on the topic of social media and corporate responsibility, the Canadian Institute of Mining, Metallurgy and Petroleum asked me to write a piece for their journal, CIM Magazine, focused on the extractive sector.
An edited version of what I wrote appears in the September/October issue here.
I was also asked to write a sidebar piece highlighting Suncor‘s social media experience that I referenced in the main story. The sidebar piece, entitled “Going Where the Conversations Are“, appears after the main story at the link above.
Comments welcome on either piece; click on the “Write Comment” option in the menu on the left side of this page.

Social Media and Corporate Responsibility

Getinvolved.ca is a fantastic initiative focused on connecting individuals and organizations to make change possible. They’re the folks behind Power of the Hour, a national campaign to encourage Canadians to stand up and count the power of volunteer time. They’ve also done a whole series of interesting videos, called Digital U, about various aspects of social media.

Late last year, we filmed a piece about social media and corporate responsibility. Here it is.

By the way, at 10:25, when I said “non-material issues”, I meant “non-financial material issues”!

(And my name is pronounced “Sa-lisa”, not “Sa-lessa”! Ah, but I quibble…)

Collaboration as Competitive Advantage

As I discussed in an earlier post, social media have enabled a shift in information and communications flow from a traditional mass-media “push” model, in which a company may craft and deliver a message to its stakeholders (often a different message for different stakeholders), to a “pull” model, in which company and stakeholders are on a more even footing, and what is being said by one may be heard by all.  In this “pull” model, stakeholders themselves define their own information requirements and actively seek out the sources, connections, and networks that will meet them.

While this might seem scary to some, it also represents one of the great opportunities that social media offers:  collaboration.  If you view each one of these voices not as a threat but as an opportunity to engage and to learn, you can leverage social media to add value to your business.
How? Read on!

The CSR debate: what are you saying?

I had the pleasure this morning of taking in the spirited webcast, “CSR and the Role of Business Today”, hosted by public interest communications firm, Fenton, and featuring a group of A-list CSR advocates and detractors.  The list and biographies of panelists, and a link to a video of the debate, are available here.

Throughout the debate, there were many fine points eloquently made by the panelists, and I encourage you to view the video of the debate, if you were not able to watch it live.  (Even if you did see it, you might get more out of it watching a second time, as I did.)  In particular, if you are a CSR practitioner or advocate looking to strengthen your understanding or articulation of the context of and business case for CSR, you’ll find some good material here.

I won’t reiterate all the debate highlights (you can check the Twitter feed, using the hashtag #CSRdebate, for the play-by-play), but I would like to consider the anti-CSR case in more detail.  Specifically, I found the arguments made by Professor Aneel Karnani and Chrystia Freeland disingenuous; let me explain why. Read on!

The convergence of social media and corporate responsibility

In the early 1400s, Johannes Gutenberg invented a mechanical movable-type printing process that enabled the first mass production of books.  Within decades, the technology had spread across Europe, and the growing availability and affordability of the printed word revolutionized society.  The flow of information and ideas fuelled the Reformation and the French Revolution, broke down strongholds of power, whether political or religious, and contributed to the democratization not only of societies but of knowledge itself.

Over time, we’ve witnessed the emergence of mass media, designed and used to broadcast information from and by a small group to a large one.  This communications audience is, essentially, a mass society of undifferentiated individuals.  It receives information.

However, social media turns a receptive mass society into a creative public.  Information doesn’t just flow from a small group to a large one, and information creation isn’t just the purview of the powerful elite anymore.  The trickling democratization of knowledge that began with the Gutenberg press, social media is making a flood.

Now, humans have always been social creatures.  It’s not social networking that’s new.  Rather, it’s the development of new technologies at a time of rapid globalization and increasing awareness of humanity’s impact on the Earth that have converged to create the perfect storm of new social media. Read the whole post here

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